Lagos State Governor Babajide Sanwo-Olu has presented a budget proposal of N3.005 trillion for the 2025 fiscal year to the state House of Assembly, marking a significant increase of approximately N800 billion from the approved budget for 2024.
The governor unveiled the budget on Thursday during a plenary session presided over by the Speaker of the House, Hon. Mudashiru Ajayi Obasa.
He outlined that the budget consists of N2.597 trillion in total revenue and a deficit financing of N408.9 billion.
The 2025 budget, which Governor Sanwo-Olu termed the “Budget of Sustainability,” allocates 41% of the funds, amounting to N1.239 trillion, for recurrent expenditure.
This includes overhead costs, personnel expenses, and debt servicing. The remaining 59% of the budget, approximately N1.766 trillion, is designated for capital expenditure.
In his presentation, Sanwo-Olu detailed the proposed sectoral allocations, which include N908.7 billion for Economic Affairs, N233.2 billion for Environment, N204 billion for Health, N208.4 billion for Education, N124.1 billion for Security and Public Order, and N47.1 billion for Social Protection.
The governor emphasized that the budget’s total revenue is derived from N1.97 trillion in Internally Generated Revenue (IGR) and N626.1 billion from Federal Transfers.
The proposed recurrent expenditure includes N722.6 billion for overhead costs, N392 billion for personnel, and N125.2 billion for recurrent debt charges.
For capital expenditure, Sanwo-Olu proposed N1.452 trillion, with N313.5 billion allocated for debt repayment.
He further explained that the budget’s deficit would be financed through a mix of external and internal loans, along with bonds, in line with the state’s fiscal sustainability plan.
“This 2025 budget, as we present today, is designed to foster sustainability and continued growth across critical sectors,” Sanwo-Olu said, emphasizing the focus on infrastructure, education, and healthcare, among other areas.
